–ready to continue working with gov’t on identifying practical ways to bring down transportation costs

GUYANA’S domestic aviation operators have responded to concerns raised by President, Dr. Mohamed Irfaan Ali, over the cost of hinterland air transportation, saying the issue has already been the subject of months of engagement with the government.
In a joint statement, the operators said they had reviewed their cost structures and shared the findings in a series of meetings with officials, including the ministers responsible for finance and aviation, during which the industry’s expenses were examined in detail.
The airlines described themselves as long-standing partners in national development and said they remain committed to working with the government so that Guyanese continue to have access to safe, reliable, affordable and sustainable air services.
According to the statement, decades of investment in aircraft, infrastructure, training, employment and safety underpin the industry’s operations, and the aircraft used are far from cheap to acquire or maintain.
The operators pointed to specific figures to illustrate the point. Monthly capital repayments on a Cessna Caravan run to more than US$40,000, or roughly US$700 per flight hour, a cost incurred whether the aircraft is in the air or sitting on the tarmac. A Tecnam P2012 Traveler carries a price tag of about US$3.2 million, a Cessna Caravan about US$3.8 million, and a HAL 228 in the region of US$10 million.
Insurance adds another significant layer of expense. The operators said premiums in Guyana run roughly 300 per cent higher than for similar operations in the United States, and are among the highest in the Caribbean; this is a reflection of insurers’ assessment of the country as high-risk given its remote aerodromes, tropical climate, limited emergency infrastructure and short, unpaved runways. Insurance coverage, they noted, is mandatory.
While acknowledging the government’s ongoing investment in upgrading hinterland aerodromes, which the operators say has improved safety, reliability and efficiency, they maintained that aircraft still have to operate on laterite runways and gravel strips at remote mining and village airstrips, driving up maintenance costs compared to operations in the wider Caribbean and the United States.
The operators said fuel, maintenance, spare parts, insurance, financing, regulatory compliance and skilled labour are the real drivers of domestic airfares.
The statement stressed that the domestic aviation market is a competitive one, with multiple private operators vying daily for passengers and cargo, which the operators said leaves little difference in pricing between competing airlines.
The operators also pointed to comparisons with fares charged for similar routes elsewhere in the Caribbean, arguing that their prices come in lower despite Guyanese operators flying in more difficult conditions than their regional counterparts. They said this demonstrates the industry is not profiteering.
The domestic aviation operators said they remains committed to identifying practical ways to bring down transportation costs without compromising safety or the industry’s long-term sustainability, and reiterated its willingness to take part in an independent review of the sector’s economics so that future policy can be shaped by objective data and a shared understanding of operating realities.
In their meetings with the government, the operators said they had proposed a targeted transportation assistance programme, such as a voucher system, to support specific groups including schoolchildren, medical referral patients, pensioners, and low-income residents of hinterland communities.
The operators said such an approach would direct assistance to those most in need while preserving competition, encouraging continued private investment, and maintaining safe and reliable air services across Guyana.